Earnings To Watch: O'Reilly (ORLY) Reports Q3 Results Tomorrow
Auto parts and accessories retailer O’Reilly Automotive (NASDAQ:ORLY) will be reporting results tomorrow after market hours. Here’s what to expect.
O'Reilly missed analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $4.27 billion, up 5% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but underwhelming earnings guidance for the full year.
Is O'Reilly a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting O'Reilly’s revenue to grow 5.3% year on year to $4.43 billion, slowing from the 10.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $11.55 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. O'Reilly has missed Wall Street’s revenue estimates three times over the last two years.
Looking at O'Reilly’s peers in the automotive and marine retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AutoZone delivered year-on-year revenue growth of 9%, meeting analysts’ expectations, and CarMax reported flat revenue, topping estimates by 2.7%. AutoZone traded up 2.1% following the results while CarMax was also up 3.8%.
Read our full analysis of AutoZone’s results here and CarMax’s results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the automotive and marine retail stocks have fared somewhat better, they have not been spared, with share prices down 2.4% on average over the last month. O'Reilly is up 8.9% during the same time and is heading into earnings with an average analyst price target of $1,210 (compared to the current share price of $1,219).
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